Due to the high public interest towards an issue, the organization, “Young Barristers”, calls the Competition Agency for consideration of the cases regarding the facts of abuse of dominant position in the internet market.
According to the lawyer of the “Young Barristers”, Nino Isakadze, it is important, that the Competition Agency, due to the authority granted by law, started studying the issue of honesty of the internet market players, in record with the possible violation of the article 6 of the Georgian Law on Competition, which directly prohibits any abuse by one or more undertakings (in case of joint dominance) of a dominant position. The organization notes, that since March, 2015, internet providers have significantly increased tariffs for internet services. This may be regarded as unilateral violation of agreements with consumers on behalf of the companies, as no justification had been represented to the consumers for increased tariffs. Accordingly, high possibility of an abuse of dominant position in the market, exists and the Competition Agency is an authorized body to study the issue.
According to Nino Isakadze, despite the fact, that according to the law, economic agent/agents are not regarded as having dominant position , if his/their market share does not exceed 40% in the relevant market, for today, some ten internet providers are operating within Georgian internet market and 60 % of it, is owned by two major companies : the “Caucasus Online“ and the “Silknet”. It is important to determine the legality of the internet tariff increase on behalf of the internet providers. The prices are permanently increasing and the companies blame different factors, such as existing economic conditions within international internet market and its influence on the local market as well as the conditions of Georgian economy generally. However it should be specified, what they mean under such formulation. If they mean GEL exchange rate fluctuations towards USD, than it should be noted, that the internet providers buy internet mainly in EUR, and it has in fact not devaluated against GEL.
In accordance with the organization’s observations , the current actually dominant position of the companies, “Caucasus Online” and “Silknet”, raises reasonable doubts, that consumers’ legal rights and interests are determined by secret agreements on the joint tariff policy between these dominant companies. Accordingly, this is the fact of abuse of dominating position on behalf of the companies. The research makes it clear, that the quality of the internet, offered by internet provides, often does not comply with the terms, determined by agreements, concluded with consumers. In the circumstances of permanently increasing tariffs, there are no preferential tariffs even for those, who are regarded to be loyal consumers for over the years. The problem is that, consumer doesn’t have opportunity to choose, as the competition in this field is limited.
According to the evaluation, offered by the “Young Barristers”, one of the major goals of the law of Georgia on Competition is an inadmissibility of abuse of dominant position in the market. Direct or indirect imposing of unfair purchase or selling prices or other unfair trading conditions established by the company, may be regarded as an abuse of dominant position. Therefore, the Competition Agency is directly obliged to study the current situation of the Georgian internet market and timely take relevant measures in this record.
The organization “Young Barristers” appealed to the Georgian National Communications Commission for studying the issue of dominating positions of internet market players, in order to avoid consumers’ rights violations resulted from the secret deals over the joint tariff policy between the companies and to give citizens opportunity to choose between an expensive and relatively cheap internet services, but the National Communications Commission had not responded to the issue.
